Darden Restaurants (DRI) 25 Mar 212021 Q3 Earnings call transcript

Company Profile

Participants

Kevin Kalicak	Senior Director-Investor Relations
Gene Lee	Chairman and Chief Executive Officer
Rick Cardenas	Chief Operating Officer
Raj Vennam	Chief Financial Officer
David Palmer	Evercore ISI
Dennis Geiger	UBS
Jeff Farmer	Gordon Haskett
Jake Bartlett	Truist Securities
Eric Gonzalez	KeyBanc
Jeffrey Bernstein	Barclays
Chris Carril	RBC Capital Markets
James Rutherford	Stephens
David Tarantino	Baird
John Glass	Morgan Stanley
Lauren Silberman	Credit Suisse
Brett Levy	MKM Partners
Andrew Strelzik	BMO
Nicole Miller	Piper Sandler
Jared Garber	Goldman Sachs
John Ivankoe	JPMorgan
Andrew Barish	Jefferies
Howard Penney	Hedgeye
Brian Vaccaro	Raymond James

Call transcript

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Operator

Welcome to the Darden Fiscal Year 2021 Third Quarter Earnings Call.

Your lines have been placed on listen-only until the question-and-answer session. [Operator Instructions] Please limit yourself to one question and one follow-up to allow everyone an opportunity. This conference is being recorded.

If you have any objections, please disconnect at this time. the to turn now will call Mr. over I Kalicak. Kevin Thank you.

may You begin.

Kevin Kalicak

Good Jack. thank morning, you you, for and call. everyone, Thank today's participating on

me COO; today and Joining call Lee, the Chairman Darden's are CEO; Raj and Gene Cardenas, Vennam, CFO. Rick on

described this are made as the and cause in results that subject Litigation in to projections. reminder, Securities include are actual of Act in Securities will differ Those could was which our during materially its risks Commission. the and a forward-looking company's call As XXXX. and Private expectations Reform the distributed comments to from statements with and morning defined release, Exchange press risks These this statements uncertainties filings

in Today's We Relations at release these the our fourth website simultaneously reconciliations and measurements, in discussion of the Investor presentation. plan XX this are We a posted presentation section darden.com. broadcasting includes are included of during quarter and June to certain presentation measurements earnings non-GAAP on XXXX is call, fiscal which the give our our fourth conference outlook share more Rick and Raj on opens provide remarks. This and our results fiscal brief for some morning, the Gene will will will before by update operating XXXX. call. priorities followed detail four outlook and partial on for financial share an a quarter market a

turn I'll to call the Now, Gene. over

Gene Lee

help everyone. years this on the strong it to to is it’s believe we period and to provided hard been everything unprecedented strategy morning, clear transpired, since navigate reflect to It's our change significantly impact began me uncertainty. developed of and the business. year that foundation six a good pandemic Thanks, When us Kevin, a I ago has back

focused scale significant oriented our stronger. this culture extensive and and iconic operating role operational of results our executing And our emerge planning, four to our leveraging of and our culture. Our and an business brands outsized year, Back-to-Basics critical our past been four data scale, have insights, portfolio strategic while advantages competitive rigorous played were significant our has success philosophy while in results to competitive advantages ability oriented on

us quickly operating environment. and product adjust without supply ensured turbulent scale chain that The supply react interruptions. to to could we experiencing relationships significant our of as our Our enabled significant breadth any needed depth the

We have our consistency distribution provided the level uninterrupted and of chain and own certainty a high dedicated operators. our of assurance network, for supply an

and the development several Our existing a scale and has also first-party cascade new the enabled of digital The digital of platform guest. our effectively. over and quickly data on expansion other to us of ordering set them provided and initiatives accelerate significantly robust brands richer us our online year across past

multiple to COVID-XX. early during our pull of levers provided we Finally, scale days us we liquidity the to needed the have with ensure

As soon our transforming business needs as to were able their our models. focus brands for, were on propositions strengthening and their solved liquidity value

emergency payments insurance such brands As $XXX leave. commitment COVID-XX success team all were hourly every recent our of decision job in These Founder, we've to members of COVID-XX restaurant their invest to million in pay of investments to off safe time of include Darden this and the provide evidenced vaccine. throughout day. than said, quality competitive the excellent company Throughout past is our has greatest the covering by members and advantage Darden and employees as who they also purpose paid four the the benefit for up members deductions we've more sick March hours our Bill our year, our do of continued is our experiences. is people for and furloughed. past a stronger receiving team result year. team members paid why and emerged Since That invested programs to have our relentless direct our team our guest XXXX, exceptional the and through delivering

which impact hourly the million, In approximately totaling include $XX announced addition, one-time XX,XXX investments we team nearly bonus members. today will these

and As restaurants, we best our continue attract our industry the be in talent to grow the to will our business retain guests critical back and to success. welcome continuing into

average, While about we're hour $XX earn hour. more $XX income. team hourly hourly tipped proud restaurant per made which and Monday, every morning. earn tip per inclusive that we at non-tipped will our more team least I'm announcement hour, on and today, our bartenders who $XX than earn members of includes Beginning servers this an excited member than the

$XX These January are employment we hour in Additionally, further to XXXX. and proposition. in our $XX to per hour per leading strengthen XXXX investments raising committed January to that amount industry

I resilience through and and in extraordinary commitment for who I year. members past to shown delivering impressed thank by be inspired passion exceptional and curbside team you have your experiences again, continue room Lastly, our the to go. Once guest dining during our to

management team, we're You of to behalf grateful on are and And the heart extremely the our soul of you. company.

to Rick. it over turn I'll Now,

Rick Cardenas

and Thank everyone. you, Gene, good morning,

Gene to As believe for operating this a been it's in environment we've year. hard said,

deploying our have our measures. In the manage even restaurant care philosophy, focused operating members continued remains of have key members business year, protocols. guests. priorities Three, One, the four team addition transforming our strengthening taking we includes social onset health teams executing this experience. by requiring masks fantastic safety continue guest team in to safety priority. our monitoring, of restrictions enhanced we a members past top – the parts and done member, for of easing on simplifying successfully daily our Throughout to guests. the and to country, guests and remaining This job procedures as our execution. our safety through the of cleaning great to our ensuring our every member and Two, pandemic: established team and Today, while upholding follow some Back-to-Basics the team health and enhanced are distancing the of protocols team The health at technology safety this situation of four, improve model. And our operations

has items, this to makes dishes A are low work, of good streamline low example means have gave environment. in once to finding satisfaction serving priority of our continue have and restaurant and our a ways brands. remove normal we to each lifetime teams would operations easier consistently operating our simplify decisions opportunity in-restaurant to aspect brands highest or our a most of preference focus for we second at a guests. to drive in not and execution able been all done us items. to how been Our This evaluate operate make to more This execute every popular preference of our do our we environment which menus it

bottom year at guest items about and Garden they a preference. entrees XX the XX%. fact, to accounted ago, top approximately today us In allows for execute distractions Reducing a the And Olive for eliminates high at XX% selling account level. of

reducing reduces We time need which them and have dramatically items, prepare volume to waste. the low saving food reduced

For eight example, the from than number items total than more of less Steakhouse, is XX, with down at LongHorn pre-COVID. to X% preference

to continue at and to closed, to build have quickly it. made improve to experience roll online on began and ordering months. our rooms technology we last the dining deploy Third, the over pandemic yet were were deploy the When XX our able guest that we had the out brands progress we

the message notification up streamlined out feature. go text to also curbside Here pick rolling the process I'm by We Curbside

Year's technology new New improvements Olive off when So us easily for experiences they days, enhancements achieve These Christmas ratings Eve Garden guests during Day. Valentine's satisfaction high and time premise and other process Eve, helped delivering included accurate arrive. can a busy quarter all on-time that off-premise alert guest three and

of pandemic. online in In enhancements to was meaningful Olive quarter, our fact, day order resulted several Also LongHorn Garden rates. a the reduction the since streamline in during their process. to This and the start Valentine's checkout abandonment Day highest brands the websites including sales implemented

Our continuous is transformation guests. our resonating digital with

XX% total the In online fact, tablets settled of of either XX% digital quarter, during all on were digitally, checks or tabletop sales were or Further via guests nearly MobilePay. our transactions.

will compete platform great And resulted more year, investments and the brands our transformation and to We to made process the model. of menu journey effectively. through our with provide our in simplification over significant the finally, strengthen our past made have our in business continue to tools simplify business strides we digital and we've digital have

the hourly by Darden, brands productivity labor of detail don't over XXX has helpful are model helps be restaurant business of margins done teens, over with the provide XXX% a the the while to as across When more such margins to this to improving what improvements year-to-date Cheddar's. business well has XX% to has improved the future of our some by level We intend by sales, bit grown would that highlight year-to-date into a Cheddar's XX%. through continue basis level be points Cheddar's over XX% expect to high quarter Cheddar's third insight we sales well level restaurant brands example, For pre-COVID it transformation this P&L, model reaches provide our to we the retention illustration in in and making. the thought

expected we XX% the XXX basis with businesses of result As across are margin of sales. to previously, all of our have improvement in mentioned points simplifications pre-COVID

across also to our today. to model business new return are exceed to belief all lower transformation Our this the strengthens Due ability brands. of our transformation, open required our sales expectations value creating our restaurants much in

new fact, restaurants each quarter, opened is and our during expectations. six In the we exceeding

saying to it to our over thank by members. hand Before I want to team I Raj, conclude you

each. is direct success of that service result to Being team is and heart demonstrate through their hard members our As of guests commitment and our of Gene their a at day business our said, work. the our Raj? every

Raj Vennam

Thank you, morning everyone. Rick and good

a per restaurant decreased and sales quarter, was billion, for earnings XX.X%. operations from continuing share For EBITDA diluted decrease $X.XX. the Same $XXX total were third of $X.XX million XX.X%. sales net

beverage food points quarter labor primarily expenses investments was driven XX and XX food higher. this by year quality points basis Turning of to last and in basis than P&L; mix. higher were Restaurant

million we member bonuses invested quarter. mentioned, Gene As this approximately in $XX team

last year utilities, compensation, lower by year. was with expenses labor last altered would for bonuses, maintenance Excluding to in points The workers' was year. year as was due de-leverage. of below to was The points driven XX margin last a than points points labor favorable higher week XXX operating Marketing basis efficiencies to to does restaurant due the Rick marketing of year was last to XXX last points member year Restaurant hourly basis basis expense. have total than only all lower EBITDA basis due XX.X%, by from operational de-leveraging level last favorability simplifications gained XX% million basis of favorable $XX percent driven declines. discussed. by been sales to labor partially sales and spend expense improvement XXX XXX sales labor management than last lower hourly Restaurant improvement restaurant This team year. repairs offset

would closed margin been in at XX.X%. House EBITDA Excluding the quarter this restaurant location even $X of and level have hourly member in one-time one team had since charge Oregon Yard been a bonus, temporarily restaurant resulting million. We was April. impaired stronger impairment non-cash Portland, This

Turning we of million This mark-to-market during on the to G&A; recovery offset partially in the quarter favorable $X.X resulting compensation. finalized favorability was different $XX million. by expense our of legal

these have quarter. million items, $XX been Excluding G&A this two would

an As this appreciation market corresponding points $X.X margin equity million a of due XX from presentation the in to reminder, way and income the both of reduction significant tax this the related basis of Darden mark-to-market the expense it hedge is to mark-to-market quarter, after this is mostly offset expense basis. XX and operating and we expense. illustrates on share Page income quarter's price operating reduction

by reduced this million. in quarter resulting earnings hedge reduction of expense tax million to after tax $X.X net a Our income $X.X

Our reduces was hedge low the rate first, I compensation factors: two X benefit tax unusually due mentioned percentage quarter the this effective tax of from tax by X.X% rate the just deferred to points.

points, stock drove the million these option tax would been rate for for factors normalized the benefit. exercises percentage by after XX.X%. approximately X.X tax the effective quarter this quarter have tax of excess our $X third rate adjusting Second, Reducing

Looking at versus this segment declines. segment year our performance last increase despite saw sales profit margin quarter, Garden Olive

declined improvement. margin and on marketing significantly which reduced inflation simplified profit investments lower focus margin beverage labor continued higher average for and expenses, than with beef drove expense. Longhorn Our direct higher as Segment drove this operations, other combined food

sales decline with of this declined In quarter labor to de-leverage. generated over across segments the percent million to profit from fine Segment $XXX addition, the margin were free de-leverage flow and sales and a sales significant in cash. We ending cash the due other P&L both restaurant expenses of year-over-year. $XXX our million as higher for dining quarter due third

today, business with announced some sales of as a authorization we durability finally, $X.XX applied rooms our Therefore, of of performance our return to determine to dividend quarterly a dining strength to that dividend previous a XX% quarter; we our replaces model of provided payout future has of first plans share end, The our durability capacity. quarter, pre-COVID Our given the visibility Board recent just our after million, open To morning, to XX% of we $XXX and levels into of our to which for the dividend have declared which months weeks our matching XX% Turning resume us testament today better the earnings the dividend. the the share suspending dividend ability XX is level. pre-COVID improvements. flows. fourth target cash saw in of And This per repurchase three week-to-week cash all we will to sales the new we authorizations a flows. to cash

increased, operations the be we between we the for billion; $X.XX new shares. also We've As outlook diluted currently Taking total net on for all into year stimulus $XXX receiving million and approximately XX continuing and consumers quarter checks. and XXX and dining and capacity for updated the roller $X.XX million $XXX expect expenditures million net from sales $XXX our $X.X million per share capital share $XXX of began EBITDA room consideration base restaurants to between year. vaccine diluted full earnings between that million, anticipate and opening of fourth a progressed,

growth, sales and XX% believe falls basis outlook resulting can EBITDA We margin this of within pre-COVID of points framework. QX continue EBITDA we dollars to our XXX in achieve pre-COVID on

on did costs some the beyond And XXXX provide costs, fiscal it's into will expect while incremental we we there back move to as sales that training, to into items. investment to such earnings, marketing the insights As additional fourth few travel, early preliminary and a too are quarter, growth P&L. come other and guidance we need want provide

in spending XX new approximately capital total desiccant million fiscal $XXX and expect We $XXX sent between open and million XXXX.

effective anticipate it open XX% we'll rate And an also that, up questions. We range for of the for XXXX. XX% fiscal in tax to with

Operator

Certainly. ISI. [Operator Evercore Instructions] David with Palmer

Your line open. is

David Palmer

Thanks.

very high, more the think that expansion [indiscernible] strong. be Just about my that that off-premise labor the that of currently? right first, would clarification And basis a of – That rethinking you points much back investments you're contemplate But of did these holding helpful. XXX permanently, that stickiness thinking are these And as I'll the making? margin my dining you in business get is or question which the pass the very locations, is how on? seating do seating is but like how The now, available thinking have you that it meaningfulness really and of and of currently, comps? mix XX% The mentioned people about you're capacity say restaurants seating about follow-up, you partial much recent weeks. Gene, looks rooms even I'll off-premise Thanks. the it are numbers is comfortable, just clarification

Gene Lee

and over points so is embedded is laid and we way so capacity dining labor advantage of investments Good that restaurants. the is, of particular out, can Basically, think XX% we on has sales; of because in capacity. morning, an somewhere inside the But talk dining improvement. room Olive there. there's and XX% made make utilization four the the plan, think between about way We'll the the the dinings boosts. at limitations Yes, XX% our of are the about our its We Garden LongHorn depending it still number inside availability David. we're inclusive XXX to basis

best now, guests team interest are following we're municipalities CDC safety the and continue team the with And it's health the guidelines, what the interest, matter our believe our our of As in and doesn't it long members' best for their members follow priority guidelines. right our CDC doing. as we to local to

room somewhere plan XX%, And individual so XX% floor XX% depending we think premise on about dining our the and off between stickiness.

our incredibly with Rick's impressed prepared is remarks, in – just The experience. I me in saying, off-premise XX% adopted, team being being our off it's by to single digital now I digital. total every sales the day, done better let of am improve he thought getting has our what about experience Let me talked capabilities start

as start get really restaurants see we off I fall in I impressive. off. as the this capacity that to that's premise more to and offer think we individual do that more believe will

the I because of think believe I a developed that there and off we've the why capacity is premise. there's limited, capabilities still our that good vaccinated. lot people aren't for out fully of still during demand robust future, the be said pandemic that I today and going improve can't those capabilities that be. all percentage you to and it's is our still to will our what will that vision continue tell the when for business off-premise in done. There's how

David Palmer

Thank you.

Operator

UBS. with Geiger Dennis

open. Your line is

Dennis Geiger

Great. Thanks kind Gene regional of for question. seeing. might to be bit ask differences more any that you about a the wanted

just kind where gave lot a performance premise on the do states, the you looks you. than constraint have if greater of capacity premise there those Thank in to most system it on select and for in that your based by a as restaurants average? on different in CDC that difference state, think seeing I capacity you're notable by curious cases does if on across off it whole some off restrictions, following-up region, state But relates you interesting restaurants. color guidelines or then being

Gene Lee

there. which Well, only obviously at capacity pretty that's is we're restrictive – XX% in California,

in So, yes, percentage higher is California. our takeout

Northeast coast, of So it's – both part the say I on especially would coasts, country. the still the North pressure

is much I and the call think as out from the around. all more greater is not get where consumer I willing mobility, great to seeing still and Arizona Carolinas to You're mobility over move is it way would as and what much

the about transpire their is going is as But more and mean, more optimistic confident day, get people to excited I it's every here to And this getting maybe we're I vaccinated, and changing more ability over This and be dynamic what's become folks. So few where, daily difference more next mobile. get people cautiously sales point months very to and there's in there. few in think years. the

Dennis Geiger

Great. Thank you.

Operator

Jeff Farmer with Gordon Haskett.

Your open line is

Jeff Farmer

Sorry, follow-up here. just little looking call a a for bit of

I'm of in what they you that are So in of in customers? customers? learned curious they customers strong looking what just actually you've to just seeing sales, nature at who's these very there new terms customers go terms Are are to Are driving increased – these go driving frequency? new curious of of, sales terms I'm are guys existing the levels?

Rick Cardenas

came Rick. customers. regards the In you who's new saw of We're still everybody was before right? Jeff, ones it's at know, higher is station then the the ordering our Hey, dining room the a to go, frequency the and seeing the lot pretty pandemic walk new customers question. If new the Thanks and hadn't which A is But lot of our than higher the and reordered was into for they in of it, frequency is and been full, of our the driving those coming may newer to you order. we frequency go those dining sales start with to room you to of just customers high. but and in over existing customers. restaurants

side up. mentioned younger restaurants to go for and to with so people happy get some what put to pick technology come with has done go made what We as the are in or to here in go with our easier curbside people helping business. we've car we to done really to order is much it It we've that Gene

we're them. gleaning and And about feel from so getting good customers the the we're information really we

Jeff Farmer

Thank you.

Operator

with Truist Jake Bartlett Securities.

is open. line Your

Jake Bartlett

of about capacity Gene, first the CDC just the terms Great. guidelines. Thanks to the question. my one that following for is in taking XX% XX% comment the

CDC, restrictions look they about country, easing think do they just we just overall do or As from increasing? as of matter your across really the – think should the capacity kind we about we at and the really guidance

Gene Lee

a I mean, interesting it's think very Yes. question. I

there. a along lose now; action I deep out is point certain best where right tell. Then tables like We may to the two comes of the the think we Right hoping XX% that things to the that of to believe consumer now date. be we or feel a the consumer bar standing with back in waiting continue a guidelines. still of the CDC the it's course box but XX% there follow to in those with CDC we're just LongHorn prudent one to for And consumer is think you is determined I marketplace, And on three at guidance it's capacity and too not behavior. that the on guidance. the that follow really early that's

in asking So still that's lack capacity we outside our corrugating guests of kind lobbies. wait right that of not We're and have included that to now.

there's So we're too. revenue – losing that we're there losing

I I if guidelines continue decline, So think to to the cases – other forward. indicators follow think the it's reevaluate we let's in and move see around rate leading the here term, CDC and some and continue let's near COVID as we'll death then

Jake Bartlett

week X% guidance versus context then sales I think and XXXX. very you you. believe in implying, in the is it. X% lower and fourth weekly positive. quarter in was lower, the I still that quarter strong the the average maybe obviously of I'm or I about Thank the have question last fourth the the gave facility Got And same a about weekly guidance

you're in, there about if anything was can in you think abnormal this the that XXXX? deceleration levels. I So last expecting Maybe just current about to relation from week if talk

Gene Lee

to we've a transpiring, marketplace of lot of we that are a people. government right? Well, that a yes, there's you lot We've variables mean, stimulus bunch So the with sent got being government is chucks of I the part is sent the and multiple backend can't really a is stimulus XXXX we stimulus those know, big out. the that XXXX We – use believe of maybe increasing do which really this. out got and virus vaccinations driving of the one variables of declining. got we've tease and weakening What the XXX. weekend in is

We a that outlook the big, big, this quarter. And know a for was and of package. have that history this so was phage stimulus don't the from a big rest this in stimulus was of our we

now that it here it So we'll see thinking right tails how but long quickly. lasts, we're pretty

Jake Bartlett

a lot. it. Appreciate Thanks

Operator

Eric KeyBanc. Gonzalez with

open. is Your line

Eric Gonzalez

Hey, thanks question. the for

maybe question. Just a margin

think I in possibly guidance the EBITDA of one is we've some some highest time. seen, your margins – implying, of the

Clearly about So some maybe what's – one-time what's recent you the and sustainable we can G&A can basis marketing terms forward. in obviously part there's XXX setting. guidance? points and maybe go Thanks. of savings what sustainable that, upside recent you trends too going in the talk that talked of the But about through that margin trends is Yeah.

Raj Vennam

Eric, Raj. question. for the Hi is Thanks this

or you QX those when but have are then for levels, that as it, generally if the about positively the you, think if that of our we'll back, levels with he's prepared point remarks, come really into QX; as at about So is We've And margin think And percent out it's sales. not sales coming ramp over food about in some level as labor saying up fact as QX, some made his in going think back depends have that made too. and it's the these the investments. margin and discrete not to to beyond come there one, costs really it as marketing along time that cutoff, EBITDA some that partially QX proposition offs you I come That's you right? this about – highest the from we're costs we talking go think want sales the to two annual the into will percent higher, when and fast that P&L And QX. that are combine we are sales I And on the sales back pre So like have you of costs acceleration that where continue back I then but by at contributors to look the to decent the going all we're the guests. up. an offset do here, one as will investments are. big costs a XX mentioned we plus value of the average where

marketing expenses done points. take then by So we XX% at XX Personal G&A, are like probably given should the food help to the labor reduction those And will G&A. feel going maybe from off a levels, will we at be we've flat, it. basis on relatively and be slightly flat away

some do come As those and think to And play going – down will we're in. we but not going go on some further, do, come will any we there what things sales maintain those I we the of costs to the we of the to do of margins grow back from think these but the are are still based want XXX and can some economic see out environment saying backdrop.

Eric Gonzalez

Thanks.

Operator

with Bernstein Jeffrey Barclays.

Your line open. is

Jeffrey Bernstein

just much. hourly the wondering floor at $XX at make these on people has that broadly. assure are been question wage then an these least investment very of your of out large the more team or hour The terms I'm Thank you one what likelihood a the pricing national your be what seemingly can setting for approach of thoughts states already in an profitability Maybe you increase? and and to Gene, Great. follow-up? the share hourly is tipped elevated a encouraging employee all just is how primary members. just in levels. on And this wage are rates, I obviously to more $XX see you of had

Gene Lee

get the not specific And costs Jeff. program. of say to this is going guidance. our cost Hey, of into in to – the not We're good we'll we're covered this about morning, implementing all going

here. far As wage I nationally, are of rates as lot momentum mean, there's a

to to for with. bipartisan think momentum a solution I everybody can group live that, get a that think there's I

wage. restaurant extremely more is focus that server our the that to we constituents. think that is think the I change consumer want The change for – server. overall that relationship protecting both think is consumer relationship we business, on to for and the want extremely with We important tip think with the that important the doesn't it's doesn't

importance current have people that, are but to the I people able out would wage, we the any as would well change improve positioned been forward. able the do – to the the and to would average is time doing, compensated On greater develop and note become this note. really changes over powers The well through industry be model become with that's here. earn so server employee it's servers I capabilities belief that these And I have the believe not would They very be that focus an compensated very average, less, earns we're become servers compensation what to pricing, to at $XX and those that of way this tip believe for my competent. And point more. and above just set with if manage to and positioned as and manage for proficient manage $XX out eliminated, do how or they structural average to their you important think well – Washington change. hour. We've to the think would that, working their per be our I that the come it's skill our been to that to effectively, and We think whatever of tipped to that per that's important they're hour changes works we that I opportunity think also earn I explaining through individual changes we've our states we've you of fact been wage managing once move years, so relationship. or And relationship productivity. and than about that and was we're wage end

Jeffrey Bernstein

of opportunity. it just you the hundred And terms just said as a basis think the was wondering, million just or of I Understood. marketing as quarter mentioned down in to $XX-plus follow-up helps third then margin you couple in one the of I'm – big points.

from thinking recovery, there you're think or your how on investment qualitatively, opportunities wondering some fiscal Just fiscal or channels? whether you expensive it's shift maybe whether about fourth are channels you. quarter marketing thoughts various more Thank you savings as the of how permanent that away just some XXXX? the for about Maybe

Gene Lee

really and We we'll definitive And the each need decision think to I back is very believe highest what's the which we'll plans to businesses, all different. each I it most to right really for understand have channel have is way don't And in, is. channels the environment to, move the if we we investment what we the make ROI have as to we the Jeff, competitive that thinking then Yes, can forward. effective are now different the of have about layer on which then we for evaluate the need make businesses. of any we're

environments. creative; We're some plans creative. And what so are some job bought good we really redeveloped. But at in would still levers now good – the on pull we think We we're spending some have appropriate the the I television. different right we have contingency money think level. spending in running very the good liked very Olive Garden. I up We're done still the We fronts. team's a know

messaging. And so across getting I great we're think

at So and think the We as spending it's evaluate advertising. cut we've we're We're to move forward. we'll levels We're appropriate still spending digital search. now, not still money some on we continue all like right in channels.

Jeffrey Bernstein

Thanks for color. the

Operator

Carril Markets. RBC Chris Capital with

open. line Your is

Chris Carril

Hi, good morning.

recently? in portfolio the your are efficiencies about the an the bandages level term longer you've leverage improvements now last over add year this the into composition lean potentially that further and to thinking opportunity brands of and So of digital. find business clearly the all morning and in the the And again you've of built? context position How brand further enterprise to used discussed scale you you've how you're

Gene Lee

brands Yes. We today. our love

wouldn't brands our going – more competitive the broader the the right changes had made moves growth to structural and we or the maybe of them of that business that think and our new at a capital we the competitive they our excited for to brands weren't our they're and that. a were underperforming these some change have more were, about because midpoint this better bit. the may they little that I invested as lot be say to were returns in And that earned alternatives, against because has even that's inside really than better set think portfolio. hadn't probably I But expectations underperforming, didn't of some

So these more potential we're of we're little about brands. a growth the excited –

opportunities, goes, at continue standard answer As to to I'm really at give on subject board and that mean, this the that you I that can't far going know and with more point. as look I than we much a conversations have M&A I say

Chris Carril

you. Thank

Operator

Rutherford James with Stephens.

open. line Your is

James Rutherford

Gene. Thanks

you're guests your changes noticed As behavior noteworthy lingering or guests seeing to their wondering behavior they cetera. appetizers that a of you there's longer had more restaurants, come as if to in started kind just pattern. any and et entrees, back into differences any more drinks ordering less or I'm expensive

Gene Lee

their think markets I mean, amazing No. I I any think noteworthy certain – people it's get people it's vaccination. don't behavior. in

do wait for lot I and they a this near especially few mean, a larger thing their a just just, you time to even that I sites, a that should year, probably back senior excited And they tell noticing we're groups people go to there's citizens there in just, of it restaurant, can is experience. is, there's the this be. they're though to vaccination happy because first having But mean, out, back. dining of to first are The in is just vaccination out a days some be you so that be see

no So good restaurants in are definitely noticeable. There's mean, it's be I right happy. vibes to a are changes, out people our other and now. people than happy major

James Rutherford

this around, to as of an the geo-fencing, is doors give you're kind better a and things convenient than Well, on of that's you curbside great much the to even channel to dedicated make hear. kitchen curbside, it is how on hyper system any offering follow-up update initiatives today? think or doing I today And the can of your

Rick Cardenas

Rick. is this James, Hey

brands offering experience, all curbside curbside. our of the are On

that the do, restaurants a restaurant well before cetera, be you'll they're time it's have tell XX curbside, hard offer be curbside that of their all a They minutes get malls, to that can might here. few to in – there pick-up you and text text here here Now all our today. but where the within et might restaurants feature there I'm

we a technology the that. they implement restaurants. we that works, all have And Once so blow all it in out

ordering of a up just maybe want picking or that the that And and convenient As to to in changes more prototypes the bring But maybe there the go people to we to restaurant team watch they're the a looking sit regards restaurants, change, being food build are bit still and the walk of cars. to high minute we percentage building they is out for make to prepared. to is TV. are some a and at as to our kind for in new little pick-up, it while design restaurant at the bar

to type for as keep an experience So we them in-restaurant of have well.

to to our but So efficient to just In at we're to as our having give may more, make most see them that. to We're room. a start we kitchen maybe thinking not existing bunch figure we're way looking the making that that more the believe build a regards the it's trying we the restaurants, to back-up for in in whether in. to want dining restaurants out of modifications come do side door, changes, still room guests packaging, about because

to – investments We they're huge, expect don't restaurant do make in So We to we're existing but where some huge great. to through make, that investments not go. our working that. have restaurants

James Rutherford

much. very you Thank Excellent.

Operator

Baird. with Tarantino David

open. is line Your

David Tarantino

wanted XXX business? back volumes? higher point comments to business wanted XX% understand you've Hi, laid after that to good the per to is the about hold of still volumes XXX question the current your basis as you points into hit coming with the at I margins the I that Raj. for need come of come math you going back and everyone. that, to costs Will QX Are of to these that implications are prior My basis into quarter. higher bogey? as back And morning, saying sales out costs your

Raj Vennam

margin, as we're to be to don't we're to costs as we think maintain higher is saying, I XXX volume get come committed David, No. think sticky. volume that. then diluting to And need don't we maintaining but basis grows, were so back in, that to we're that points expecting margin we actually going that

David Tarantino

then a then but model. the had I that for sales or previously? longer And it's path Thanks our or term? XXX, to that investments I want of the health more clarification. you end line what might you up as developing balance that committed real XXX% brand question more guess you maintaining I Okay. is; if exceeding the make of how of know you're do to going with see And back to sight sustain flow to that through to do you my that the the how guess sales

Raj Vennam

David. a question that's great think I Yes,

that up I have we also robust find to Could a build too way longer it do, period food of to price just we'll below below investments have want make term; off grow that? guest for we're much. us is to the want it kind trying think it experience, about grow, a we set we're still to to for into model. I way continuing that investments and our margins but That's ways We But pretty one Thinks time thinking we don't where bigger and think see the Absolutely. – want thinking talked find longer-term our exceed to sales about quality. share think gains, of about to business I market you and we opportunities competition. of as is price more make. inflation into

David Tarantino

sense. make you. Thank All Great.

Operator

John Glass with Stanley. Morgan

open. line Your is

John Glass

I XXXX a development much. very had your outlook. thanks about in Hey, unit question

you really XX it success grow? brought of Olive stepping development since just – think as look and given that as margin you bank Now, Cheddar's at that brand big constraints the is growth improvement of development XXXX. development specifically, that that company. Cheddar's of you've of fast to or better? why is faster margins do said Is you be – what to XXXX I up Garden, as Cheddar's, buying sort think for there guess can wouldn't about this at many at faster, And are this be want decision your you stone growth what a can in now thereafter? seen thesis is external internal a specifically those How the do you Cheddar's about what was, you How vehicle when right are pace what on

Gene Lee

as – one, only we development John. the restaurants COVID, next Number we whole year. of XX this we questions, couple entered team. Driving our Well, into is couple ability get a dismantled of to

that's getting inspections is once we you lot of a after really negotiate The has as permitting slowed you past people process need, plans to right now development factor that hang And so to limiting were, the but way, rebuilding through we get do we limiting out and getting people to And can significantly. working we XXX move a along much is next days year. that intent, not lease we're your it able the getting and do and last days to the as letter factor so that spent driving forward pretty down remotely XX and step But and every the move your not biggest along. that quickly is as with, up approvals that. permit

answer I way there's more us, open I the are external would So restaurants. being to is factors that able think, limiting

pass to to the We our have higher we get can that past signed. We the believe struggled just enough X%. letter construct really this control. out that shape good pipeline of is end to get of get of the of thing our We're out with down we We there, once and in But slows letters deals. and can really enough get our intent, X% point intent to we're we happy the and availability significantly hope XX. of there. There's to

in inspection and last the are a urgency a on last that over starting because just today we're there's done, restaurant that some get community make get we no that we're local that get to of up weeks, that couple and sitting sense the to open, Now out bit last there but to on add I'll inspection. can't things starting and we're local waiting and pick little of things municipalities,

business backfill backfill a limiter running. some so amount be of the recently. got new We're we're the model. seeing opportunity. we've Cheddar's, think still of – to we benefits There's of can build opening opened tremendous these thrilled that get on We've human strength system Cheddar's and here resources. that as will up opportunity, far whereas on restaurants we're Cheddar's the with bench The I As that the the limiter the

great we is overtax I hopefully we between get so, to unit be can with to to and get have And I businesses simplified, somewhere and concept want to be. benefit everything one And once high want XX% growth. growth don't And that that run. of it think our the we've X% always able great of volume open this grow platform difficult operations, we Cheddar's restaurants to responsibly to to but [indiscernible], our say still get we and thing where we

comment is that, of that one what have the model, we on Just originally the last Gardens we now thought. We think the business big may can growth more lot is are upside the harder with just transformation there's better we to and than think, on a little cannibalization a bit Garden fantastic we push before. today the handle than Olive want could and we And in business. the returns therefore that Olive

capital. place put So to best our the that’s

John Glass

Okay. Thank you much. so

Operator

Suisse. Credit with Silberman Lauren

Your line open. is

Lauren Silberman

the wanted a guess to be the hourly affect hourly I only increase initiative? will investments to rate about that Thanks at at below wages this employee XX? you percentage currently increasing employees? this across labor what And the non-tipped is And board? now by least for base then impacted commensurate of does wage specific What you're percentage your also question. I the $XX. ask are

Gene Lee

as number. this next think we for talked the you amount a get going give small. basically, you people $XX, to for plan employees. your though And to And compression exact included I'll don't XXXX and guidance. tips in it's to we'll bring employee, $XX you're you included and to when year hour. tipped your It's all we we'll give be we're if disclose projected our what what an wage wage doesn't and be inflation our don't – start earlier, of on in this. We quarter to to – We guidance a impacts big is I not going backwards issue. a there's for it's about The the have again, We're

Lauren Silberman

hourly – compared generally now? Okay. to to more Yes. But have I primarily in kind you think is confirm just your sense to question restaurants today was my pre-COVID the what right January makes your I that guess employees level – hourly I of levels? going to does this follow-up staffing that. because impact figured non-tip, how I that percentage of

Gene Lee

come the high to XXX,XXX employment We've now staffing. we're very And have It's the volume increasing at active already attract staffing, right last XXX,XXX to We've our for in We why about a to pre-COVID. week week. – to we before, We'll people strong. work. versus is That's is train is our train which a it. environment. I that now number to number But people. people every got week. proposition, trying strengthening staff got haven't I think challenge were greatest And seen home

to really I people bring operations. on things what one hiring – brands that so, we to life. think about that And certified our of And part we're trainers those that are focused train having really great there Back-to-Basics those people, focus restaurant and great to is of is able on as

so that's that's a really one, number And one now. number priority our right

Lauren Silberman

so Great. Thank much. you

Operator

MKM Brett Levy Partners. with

Your open. line is

Brett Levy

James' are a the you what what seeing we've different like. LongHorn color across and us Great. clarity demographics little into have a numbers you're Thanks earlier, go seen average continuum? on call. into for look the I'll a also. question taking check follow-up Garden given the could you and guys If the follow-up what standpoint just But we up and down Obviously, seeing that could Olive from and if give bit you more demographic

Gene Lee

better little central Obviously, than districts. fine much is that's fine say would back on I slower. in comment dining just bit the performing in I'll dining. Suburbia business fine coming Yes, a that dining

central in We the district. are weekend incredibly dining, the impressed business fine even with business in

casual. is extremely is back definitely to it's come business this going coming this slower going But be in back, coming business. to – profitable this So we're than

And couple rebounded. how so we've last I will has business that been add just of weeks, – the there's pretty impressed this

Brett Levy

Rick for out, And one potential model. you the what you efficiencies Raj. stalwarts were or the obviously the to five think do When thank pre-crisis is for margin, where – other just And you. two, versus think you found of you think you've you and can years where industry were for you're within about then three, you the get structural When pre?

Raj Vennam

to that, from now improvement number points every the get to is what out to for and could XX think me we go basis all still the once here before, Yes, I tough about XXX. had can sit And definitely beyond margin long-term back – still But do think be. XX we to project the sales this are that committed once years think I'll we it back we framework we say five would getting levels to to then we our year. we And it's be that.

Brett Levy

you. Thank

Operator

Andrew Strelzik with BMO.

is line open. Your

Andrew Strelzik

morning. you, and good Thank Great.

I'm end the have little guidance, given this On bit related be And of technology guest look last to to either internal the I'm or Thanks. time? going Are I on there. right, behind for or over technology digital this the is identifying different and had exploring you've question the little expect the of business of color finding down success just if looking new CapEx of kind that forward? the curious the a to but towards a the a kind how number incremental year? stores spend through ways of to high leverage at facing came from range. on bit, projects you then, the Are of side, holistically going all you a year. we CapEx implemented technology just somewhat this to ability perspective be kind should

Raj Vennam

right. All

Just answer Rick I'll hand me over the CapEx the it technology to stuff. on one. let

think units, you about right. next we're already spending our CapEx, a money CapEx for when So annual perspective, year’s from new

still much, next on our still we're we're that's why really on So year. working CapEx working pipeline, you see because don't move

you we these The a sitting built units hit. of earlier. last spent pandemic already some this of these spend is other thing year, CapEx on I remind want the year is lot to relatively were when then were low because restaurants and because We

color Rick? that's CapEx. So then the on And

Rick Cardenas

Raj. Thanks,

three-year to guest going we with the technology member to process we and into checking make easier everything to are year of going expect process that into in in invest as of forward. examples we roadmap an we've continue going experience. doing to in we technology money front, reduce given even for I'm easier. restaurant experience lot things of much technology us detail, technology. because it's We've going going continue of what your and another forward. invest to reduce in process data, friction team We're We the the already to better in to curbside, and actually We're of the the It this some and Here. do to Curbside to going On We're too getting shifting make We're keep to to we you done think advantage spend doing than Without for – have gives this can year, us. a more the access we technology. it. scale, friction our

Andrew Strelzik

Thank you very much.

Operator

Nicole Miller with Piper Sandler.

line is open. Your

Nicole Miller

Thank you. morning. quick Good Two questions.

rich data being on first, that comp. typically can guest serving back imagine satisfaction The guess I But leading a employee of a are it's guest. we that scores up, if indicator I satisfied

at compare discussed Thanks, and changes perhaps I wage guess, today. hourly that the maybe And So guest versus metrics for external or that employee satisfaction. contrast you are, was grounded for could look you satisfaction tied you internal that to that

Rick Cardenas

items, – are high go significantly pretty to satisfaction that their the metrics. improving especially I'll our our All items. of pre-COVID, they It's easier the shifting better they get We're because week. product experience, experience. We've restaurants to the is simplify satisfying brands to the with our it beginning all more to get improved a we've want with start of to year-over-year consumer done This make in to guest which the the getting business Rick. from sales Nicole. top our of what which are guest low satisfaction our the even XX was to at every satisfaction it. product things for way

process metrics, work and I Gene metrics the we hiring them of prepared the the we're for In as really in say, and premise They're last to it just even at with we over is side, And introduced really has quarter, big was guest experience great the turnover. the time an off-premise and satisfaction investments have and turnover there is help the the quarter us. the employee we good now all And experience And we the with that though performance. last measures at are but my turnover mentioned on most our metric metrics great accurate one for as simplify our employment taste look the for LongHorn? look forward, And leads us. they've in to two was great. employee mentioned, We're that high of for on-time that's three great, about years. made our Olive most. year. what's food to thing a on high number food all going that's I'll just investments driving for remarks we external for the of process some really proud which look they the and Garden The to So proposition, high few coming thing holidays. go, the been third all a to quality made the a their feel go we last bar Those another over pretty as at

Nicole Miller

had have, much competitors still there's and influenced about And was strategic how then line first you didn't operational make at mentioned the how you much to think talked open. and that stores, I control external by think of landscape. across down, that that just looked you and that is wrote you expectations finish excellence the when exceeding perhaps competitive the want And six those color. didn't Thank the it you if understand, I question for I and stands, that openings I

So you Thank you. compare contrast and would how that?

Rick Cardenas

of look these the the in limitations. some and this capacity for sales opened been than will considering If year, thought thanks quarter, that their higher levels we at Nicole opened restaurants actually open we hard, restaurants we we have XX% really Yes. that. restaurants at six

we've because Now other well. open, been could really performing be but restaurants that didn't

that's measures these If bit coming that's of because they always restaurants especially little you think simplifications right. room, made. two for at our menu brands guest it at a dining people Whenever them. today a with look When of they hard with then open. on actually before. the to easy And open, When that's those of have that is also a a our good we've our fine pretty part makes we've you're for restaurants, almost restaurants, restaurants make you changed in that it's line though, bottom that it the make And a dining the satisfaction full their new performing other I to programs, have bigger It with you training P&L. but we a And training our menu P&L job and if or a getting they a really much big opened restaurant and done like are the there. in open it into been better opened of than year we the really constrained. simplify room some easier, performance in thing, dining a we

so And the done open job to process we've a good improving new in really restaurants.

I restaurant would open that or So give it the didn't give during would two of time. than – more that not another that benefit much I

Nicole Miller

you. Thank Excellent.

Operator

Goldman Garber Sachs. Jared with

open. is line Your

Jared Garber

you to as on continues ago, it opportunities Good I forward. independent play get years well. market Garden more quarter, sense, maybe as made out put term? guys you Olive of we're that a XXX morning. going comments longer-term there. to we later on about are LongHorn be to those comments makes closure kind to some TAM forward thinking and wanted last data XX% on that back maybe still long from think, three and was going on should some Gene, to thinking wanted opportunities on and about how question. thoughts thinking environment and just over on on the out taking some the of, I some and Several your TAM for X% that share the relatedly, XXX How side Thanks rate opportunities circle you months

Gene Lee

will was of to on be lot that see we'll restaurants last X% get end. first in to all, – back belief Technomic my thing still quicker Yes, able come a the lot toward higher the the capacity, saw I It's central than in printed I from Suburbia. business tilted and districts recapitalized what a think XX%

think of to fact a we added forward. going I as And growing. benefit be – lot the aren't new going that population still restaurants so, that also there's a to is And are go just are

as for think the it's real as good I part it, So of far tailwind the capacity still industry. a

As the far one…. was number – as what

Jared Garber

Yes, opportunity. the Yes. TAM

Gene Lee

try property would is that a the ready opportunity of that you about which restaurant we maximize in to think our to best now. not can brand put, we as is we number will about do of best our of We then – the find. think development – way piece put think portfolio to – we and I the right that want think out piece And you find the we what land. what we're there that,

And will ebb to numbers out so get years, believe we're in next be. of our X% and I want to we the framework. where going flow. we closer That's think few to But

Operator

John Ivankoe with JPMorgan.

Your line is open.

John Ivankoe

ever to Hi, metrics thank to maybe for around you you. you restaurant taken efficiency, much, guys the is so accomplish five Obviously, XXXX so get you years. hope marketing, your question efficient and G&A you, you least much of to would changing that the Darden reorganization, to got, that big that been digital accomplished I are initiatives if not three all? are maybe, behind have like three of mean, at this in to over years, you some partially five accomplish so the you a you, operations, behind Have so priorities be fully some working ideas these much, as strategic that how next the what you at on? might that next is Board, Gene

Gene Lee

Well, I'm is. the big idea not what sure next

back that think – the cognizant on we few I fight to had gains well our staying, year. eye us us worked of really last the that how keeping back pull made extremely the over we're all towards, for big is the pulling do gravity what and us of prize we the thing

restaurants. great importantly think about do the to we that. ever, service run to got We've if I Back-to-Basics. atmosphere got able can it food, our now, our and way great right We've is be execute than more thinking So is I'm to

get adding X%, is better? significant we framework. to of puts I in lot, line a I do really now achieved haven't And less X% we businesses and right. and absolute think yet. say which less put puts I'm this our always number do I term. lot to this like do on top resources. a sound our a a to lot but start better think in restaurants How through right that's we that way make And your simple to great, we're about system, to we on I a do year strain organization of sure want doesn't restaurants. we of continue we're your new you ensure strain this we XX it restaurants When how take lot great numbers, I think – XX the our running is a think growth that Strategically, human get, opportunity change

I So of change, lot this I it's but believe compete differentiated not right not work of get now there. enough like execute. be of to done narrower, notion lot execute, whole our execute, brands a let's getting And a strategic into effectively. are to

John Ivankoe

Gene. Thanks answer. Great

Operator

Jefferies. with Andrew Barish

is line open. Your

Andrew Barish

maybe missed forward I'm sorry or at pricing using of kind kind the fluid investment menu it's you guys. for situation, terms your of But you're two in it. Hey so big XXXX the at if us a of look it I if on, least taking an what as at philosophy changing or doesn't know competitive industry. looking Can below and going for price give I brands as appear you've the pricing?

Gene Lee

is. I Andy, to it's think we that premature a what signal little think

start what I the to is to early been. have inflation at on fiscal now, But XXXX. us dynamic we our we inflation – what is understand norms it's think of I based what I we in is look be for to things And consider got we'll – to going think that, if would have do really would, one environment, going in what is be? to too our think this we’ve

historical you're I So norms on looking for point. I our look would at just this would if guidance towards more look that, –

Andrew Barish

run a last back into $XX then underlying $XX this are kind we And line? Raj, it's Okay. forward that million million, the into some of the to going G&A rate just that come number, reinvestment or been of that couple point, quick follow-up business a at may is that decent missing quarters on

Raj Vennam

point good good to that And know is say number. point, with. million think rate you I somewhere changes, I'd start run $XX June. a then if around in let as up at But somewhere this at we'll $XX around that a million think

Andrew Barish

folks. Okay. Thanks

Operator

Penney with Howard Hedgeye.

is open. line Your

Howard Penney

for how question. comp whether sort about kind the asking business consensus you for I not so it's of really just of middle a will XX% you incredible. around hire of and you two-year I'm is P&L, managing which Thank manage how how of the to a stack, Thank goes do a like acceleration somewhere from normal you good, how from in purchase comp, in the you. be the you you to in this much would – of and if – XX% sort a about the XX, do do for – comps. to that second – that see growth the you're My quarter, love business that managing XX% hear estimate next would implies sort year zero

Gene Lee

morning, Good Yes. Howard.

people part basic making especially all. the other narrow believe go of on to that that's servers to now, will priorities why people, the We chain the monitoring distraction those win restaurant the and day. growing you right single identified operation and in attract things provide also focus need each know focusing be your environment. that, offer them Back-to-Basics in in And the every we any today, But opportunities, are. them. – at the of then number next today really week. every this. best thank I'm teams I you've recruit. the and presence our each ensure this on think that in and to in day. to focus on is I with every demand the to six our is to How priorities staffing. number what monitoring – trying investment employees we're We're of careers for the great Rick best And to to you, great operating eliminate the organization why of restaurant really trying people and the And over supply with the months is We're all do that, need this people say, nine

full support an and Chain has done our continuity. we Doug what are what Head keeping that do levels need to of staffing supply keeping understand, Supply the that. chain incredible and job to we Milanes, So our

We great aged also have have we They a a be on. sensitive lot to they've appropriately, serve. of job done that products which

today, highlighted operational. – And you on It's it’s strategic challenge. focused biggest so, we're our not

Howard Penney

back training. familiar mention with any you that? bring didn't people you you. to that Thank Are you there And incremental going training Is organization? with associated the

Gene Lee

to Well, try most who that's California people. new to is organization. to going I exception going anybody do of we're back, think, of We're with right back well, we're both. bring familiar I the But now think maybe the bringing

they're it's be our as operational new for in compensation we pressing I are time of employees and give And these doing of We've in so the new I we energize some one think every what to do have able highlight – And we've the are really, And this brands. that on we key. up that. and effectively. going our of people people back in order be biggest these them the to the tools you're going task. a got to able We've we're the – were challenges and that right trainer really up. circumstance? connect And the train to to And ramped with to that the actually certified training program think the we're to teams

Operator

James. Raymond with Vaccaro Brian

open. is line Your

Brian Vaccaro

Thanks.

for any Just ones your but begin two will curious if seems spend. either have spend their in to sense thinking me. been few like ramping I'm makes it a change when On to or have, it's your quick not it chains soon as be many, again advertising, increasing there's

level spend if wondering that your ballpark So your impacting just of Raj, thinking that's at fiscal in all is embedded it, the I and sorry but if missed guide? XQ you can

Gene Lee

As about back far no to look at. as, now. And or just right in see Brian, put and we I where mean, got how We've and going this the put at earlier back got going back to put in going I we're little to to to which environment. we're competitive definitive we're We've talked advertising. in is channel we're bit on what have plans a

advertising I will lot bought them. for back upfront. that's us. Garden effective television on medium an today. think come amount for money effective We We and in a are of the Olive brand more still channels in each spending differently think We're of good a different use that

to very continue the And so creative. with we'll spend I'm happy that.

I decision. what And so, this call a is would game time

plans play, that that that. no it's We call will to do to – right when play. definitive right we'll now But call have we

Raj Vennam

would $XX QX, I And Brian, around as QX levels ballpark, somewhere similar just million. for expect

Brian Vaccaro

the great. few the can And just then outlook. to you perspective? I next quarters and of base from over your Okay, puts on wanted What touch an inflation are expectations takes the And also significant some on your touch basket? more commodity within

Raj Vennam

but out. more are are we I are more be that to – Yes. fiscal for commodity for fiscal there's We're you of chicken, it's a factors bit will bit to can get not QX, I might a ready basket the into oil There in and there's entire in do we to impacting higher think a you ones already our yet, inflation in be is where think the going as tell one actually at X% little high. I aware, pretty oil, XXXX expect with, – little around multitude those bit be little but call

Brian Vaccaro

Thank helpful. you. Very

Operator

now like There this back remarks. are to to Kalicak the I'd Kevin questions no for further at time. turn over call final

Kevin Kalicak

participating opens XX Thanks before Thursday, with we concludes Jack. I'd follow. to to today. Thanks, fourth for plan like That everyone, the a call results conference Great. again remind market quarter our call. June release to on

Operator

year fiscal thank your Darden participation. call. quarter earnings you the for concludes This third We XXXX

You may now disconnect.

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